Decision Models – Short Explanation

The pace of change is increasing everyday. Fortunately, the increased amount of data now available to businesses helps them determine the right path forward to navigate these changes, using different modeling tools. Decision models are templates that help business leaders understand and organize data so that meaningful decisions can be made based on the facts provided.

Understanding Decision Models in the Real World

There are many different decision models used in the real world. These models help in different ways and based on the problem being worked on, one or more of these models might be appropriate as a tool.

Recognition-Primed Decision Model

While it would be ideal to have an unlimited amount of time to make every decision, that will never happen. The Recognition-Primed model can help through its simple three step process though.

  • Experience – here, you are trying to understand or experience as much of the situation that is occurring as possible. Without a clear understanding of what the problem or issue is, you will not be able to make an appropriate decision.
  • Analyze – the analytical phase is going a bit deeper than simply experiencing the problem. During this phase, you are going to be asking some questions to understand why this situation exists and perhaps even coming up with some potential solutions or options for resolution.
  • Implement – while the analyze phase allowed you the opportunity to come up with ideas, during this phase you would actually be putting those plans into operation and measuring its success or failure.

Vroom Yetton Jago Decision Model

The Vroom Yetton Jago Decision Model gives different weights to different elements and by default assumes that all decisions are not equal. In this case, decisions that could have an immediate impact on a company’s future are given more weight than longer term decisions that might have little to no impact. With this model, there are three different factors that need to be considered:

  • Decision Quality – understand how important this decision is based on the overall business needs. It is impossible to allocate all the resources to every decision so pick ones that matter.
  • Team Commitment – what will the impact of the decision be on your team and others in the company? If they need to acquiesce to a change or something critical, it might be useful having them included in the decision-making process.
  • Time – is the decision time sensitive or will it not? Based on an understanding of how critical a decision is, resources and funds can be appropriately allocated.


The OODA loop is a straightforward decision model and comprises four key steps which are Observe, Orient, Decide, and, Act. After the act stage, you return to observe as decision making never really ends.
There are many other different decision models available to analysts, and while they each work slightly differently they share a common factor. Decision models work well because they remove biases from the decision-making process.

How Decision Models Work in the World of AI

The key point about decision models is that they are a structured way of working through issues and problems in a sequential manner. The goal is not only identifying what problem is occurring but subsequently coming up with a way of addressing the issues.

This knowledge and skill are something that has been programmed into the next generation of AI algorithms already. Companies like Google, Facebook, Netflix, Amazon, and others already use Elite MBAs (Management by Algorithm) to solve problems. In fact, within some companies, autonomous algorithms help make significant strategic decisions already and this trend is only growing.